The community is invited to attend a wine tasting celebrating the "Beaujolais Nouveau," starting at 6 p.m. Tuesday, Nov. 26 at The Pointe at Villa Olga.
The cost is $7.50 and includes a glass of wine and hors d'oeuvres.
CASINO PANEL GIVES DIVI 6 MONTHS TO ADD 50 ROOMS
Nov. 25, 2002 – Divi Carina Bay Resort has six months to complete a 50-room expansion of its hotel, according to a decision made by the Casino Control Commission on Monday.
That deadline, however, is impossible to meet, according to Bernie Burkholder, a director of Grapetree Shores Inc., which owns the resort, and president and chief executive of Treasure Bay Corp., the Mississippi-based parent company of Treasure Bay V.I. Corp, which leases and operates the casino.
"Six months is not realistic," Burkholder told the commission. "We will have to ask for a waiver."
Originally, Divi was to have completed the 50-room expansion the year after the commission approved its casino license, in 1998. But because of low hotel-occupancy rates on St. Croix, the panel has extended the deadline several times. On Monday, however, the members voted unanimously to require the construction to begin at once.
"Having a casino license is a privilege," commissioner member Imelda Dizon said. "Other businesses here would like to have one."
Saying that many of the planned new rooms would likely sit empty, Burkholder had written earlier to the commission asking that Grapetree Shores be allowed to take the money intended for the construction and use it instead to develop a marketing program to bring more tourists to St. Croix.
At Monday's meeting, however, he said he wanted to withdraw that request.
"We've always intended to build the 50 rooms, but we thought a program to bring more tourists to the island would make more sense" for the time being, Burkholder said. The options that Grapetree Shores officials explored for using the money, he said, included coaxing airlines to increase flights to St. Croix, reducing crime and improving roads.
"But it appears our views may not be shared by others in the community," he said, noting that Divi has received calls from local residents complaining about the expansion not going forward. And, he said, the airlines were unresponsive about committing to more flights.
The commission chair, Eileen Petersen, said she was impressed with the idea of exploring other investment options for the money. "But they have withdrawn the petition, and there's nothing for us to decide," she told her colleagues Monday.
Petersen pressed Burkholder for information about the level of off-island marketing being undertaken, noting that some members of the community, whom she did not name, have raised concerns about whether Divi's advertising and promotion are as aggressive off-island as on St. Croix.
Burkholder said the casino spends in excess of $750,000 in marketing — regionally, on the mainland and internationally. However, he said the management was surprised to find that most of the operation's revenues from the start have come from local gamblers.
Divi provides free bus transporation for local residents between the towns and the casino. This, coupled with the relatively small number of tourists gambling, has been a bone of contention for many locals, including some politicians. Michael Bornn criticized the busing practice during his gubernatorial campaign, and Sen. Norma Pickard-Samuel has been vocal about the number of locals that frequent the casino.
Yet, despite any criticism, Burkholder said, "I challenge any one of us to try and remove any of those people."
Divi Carina Bay Resort currently has 146 guest rooms and 26 villas. Grapetree Shores will have to obtain a Coastal Zone Management permit before work on the expansion can begin.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
That deadline, however, is impossible to meet, according to Bernie Burkholder, a director of Grapetree Shores Inc., which owns the resort, and president and chief executive of Treasure Bay Corp., the Mississippi-based parent company of Treasure Bay V.I. Corp, which leases and operates the casino.
"Six months is not realistic," Burkholder told the commission. "We will have to ask for a waiver."
Originally, Divi was to have completed the 50-room expansion the year after the commission approved its casino license, in 1998. But because of low hotel-occupancy rates on St. Croix, the panel has extended the deadline several times. On Monday, however, the members voted unanimously to require the construction to begin at once.
"Having a casino license is a privilege," commissioner member Imelda Dizon said. "Other businesses here would like to have one."
Saying that many of the planned new rooms would likely sit empty, Burkholder had written earlier to the commission asking that Grapetree Shores be allowed to take the money intended for the construction and use it instead to develop a marketing program to bring more tourists to St. Croix.
At Monday's meeting, however, he said he wanted to withdraw that request.
"We've always intended to build the 50 rooms, but we thought a program to bring more tourists to the island would make more sense" for the time being, Burkholder said. The options that Grapetree Shores officials explored for using the money, he said, included coaxing airlines to increase flights to St. Croix, reducing crime and improving roads.
"But it appears our views may not be shared by others in the community," he said, noting that Divi has received calls from local residents complaining about the expansion not going forward. And, he said, the airlines were unresponsive about committing to more flights.
The commission chair, Eileen Petersen, said she was impressed with the idea of exploring other investment options for the money. "But they have withdrawn the petition, and there's nothing for us to decide," she told her colleagues Monday.
Petersen pressed Burkholder for information about the level of off-island marketing being undertaken, noting that some members of the community, whom she did not name, have raised concerns about whether Divi's advertising and promotion are as aggressive off-island as on St. Croix.
Burkholder said the casino spends in excess of $750,000 in marketing — regionally, on the mainland and internationally. However, he said the management was surprised to find that most of the operation's revenues from the start have come from local gamblers.
Divi provides free bus transporation for local residents between the towns and the casino. This, coupled with the relatively small number of tourists gambling, has been a bone of contention for many locals, including some politicians. Michael Bornn criticized the busing practice during his gubernatorial campaign, and Sen. Norma Pickard-Samuel has been vocal about the number of locals that frequent the casino.
Yet, despite any criticism, Burkholder said, "I challenge any one of us to try and remove any of those people."
Divi Carina Bay Resort currently has 146 guest rooms and 26 villas. Grapetree Shores will have to obtain a Coastal Zone Management permit before work on the expansion can begin.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
CONTRACTING OFTEN ISN'T BY THE BOOK, AUDIT FINDS
Nov. 25, 2002 – Barely a month after one blistering federal audit of a local government agency became public knowledge, another has been released by the Department of Interior's Office of Inspector General.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situati on of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situati on of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
UNION ACCEPTS INNOVATIVE'S PENSION OFFER
Nov. 25, 2002 – After spending nearly eight weeks on the picket lines, Innovative Telephone and Innovative Cable TV workers will return to work on Tuesday, phone company spokesman Thomas Dunn said on Monday.
However, Fred Joseph, the subdistrict director for the United Steelworkers of America, which represents the striking workers, said there were still issues to be resolved and he wasn't sure when they would go back to work.
He said around 4 p.m. on Monday that he was still waiting for Innovative to send the details of the back-to-work agreement. "They were supposed to send them at one o'clock," he said.
Joseph said that union members voted on Sunday to accept what Innovative officials described as their final offer.
The 315 workers, whose contract expired on Oct. 1, went on strike the next day primarily over pension issues. Under the old contract, Joseph said, Innovative paid $27 a month pension for every year served. The new contract calls for $29 a month for each year for workers who retire in the first year of the three-year contract. This means a person who spent 25 years on the job will get a pension of $725 a month.
Workers who retire in the second year of the contract will get $30.50 a month for each year worked, and those who retire in the third year will receive $31 a month for each year worked. The pensions are retroactive to Oct. 1.
While the pension issue is settled, Joseph said, still on the table is Innovative's refusal to take back 73 people who were replaced during the strike. The union wants those 73 individuals to get their jobs back.
An independent arbitrator will decide the fate of 21 workers who are alleged to have sabotaged phone lines and engaged in other misconduct. Innovative fired four of those people.
Joseph said the strike was worth while so that workers could have a decent retirement package. Dunn said he had no further details on the strike.
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However, Fred Joseph, the subdistrict director for the United Steelworkers of America, which represents the striking workers, said there were still issues to be resolved and he wasn't sure when they would go back to work.
He said around 4 p.m. on Monday that he was still waiting for Innovative to send the details of the back-to-work agreement. "They were supposed to send them at one o'clock," he said.
Joseph said that union members voted on Sunday to accept what Innovative officials described as their final offer.
The 315 workers, whose contract expired on Oct. 1, went on strike the next day primarily over pension issues. Under the old contract, Joseph said, Innovative paid $27 a month pension for every year served. The new contract calls for $29 a month for each year for workers who retire in the first year of the three-year contract. This means a person who spent 25 years on the job will get a pension of $725 a month.
Workers who retire in the second year of the contract will get $30.50 a month for each year worked, and those who retire in the third year will receive $31 a month for each year worked. The pensions are retroactive to Oct. 1.
While the pension issue is settled, Joseph said, still on the table is Innovative's refusal to take back 73 people who were replaced during the strike. The union wants those 73 individuals to get their jobs back.
An independent arbitrator will decide the fate of 21 workers who are alleged to have sabotaged phone lines and engaged in other misconduct. Innovative fired four of those people.
Joseph said the strike was worth while so that workers could have a decent retirement package. Dunn said he had no further details on the strike.
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EDICT: PARK PUBLIC VEHICLES AFTER HOURS, OR ELSE…
Nov. 25, 2002 – Gov. Charles W. Turnbull said in a release on Monday that government vehicles have been sighted on the roads after 5 p.m. weekdays and on weekends and holidays.
In one of his first edicts since his recent re-election victory, the governor said this must come to a stop. "As part of the austerity plan to decrease government spending during these critical financial times," he said in a memo directed to heads of departments and agencies, "you are directed to discontinue what appears to be the overly generous use of government vehicles" after hours.
The memo was issued on Thursday, and released to the media on Monday. It continued, "Effective Friday at 5 p.m., all government vehicles will be parked … except for department heads, my senior staff, police, and persons performing emergency duties …"
Those found violating the governor's edict are getting off easy this time. In March 1999, Turnbull issued a similar edict. Back then, again to emphasize his commitment to cost cutting, he directed the Police Department to "stop and hold" any government vehicle being used without authorization. He warned then that he would hold the chiefs of police responsible for enforcing the ban on unauthorized vehicular use and said that anyone found using a vehicle outside of working hours without authorization would face disciplinary action.
This time around, the governor is asking that requests for exemption from his new edict be directed to him by Saturday, after which "a review will be made and you will be advised of the final determination."
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
In one of his first edicts since his recent re-election victory, the governor said this must come to a stop. "As part of the austerity plan to decrease government spending during these critical financial times," he said in a memo directed to heads of departments and agencies, "you are directed to discontinue what appears to be the overly generous use of government vehicles" after hours.
The memo was issued on Thursday, and released to the media on Monday. It continued, "Effective Friday at 5 p.m., all government vehicles will be parked … except for department heads, my senior staff, police, and persons performing emergency duties …"
Those found violating the governor's edict are getting off easy this time. In March 1999, Turnbull issued a similar edict. Back then, again to emphasize his commitment to cost cutting, he directed the Police Department to "stop and hold" any government vehicle being used without authorization. He warned then that he would hold the chiefs of police responsible for enforcing the ban on unauthorized vehicular use and said that anyone found using a vehicle outside of working hours without authorization would face disciplinary action.
This time around, the governor is asking that requests for exemption from his new edict be directed to him by Saturday, after which "a review will be made and you will be advised of the final determination."
Publisher's note : Like the St. Croix Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
TIPS LEAD TO ARREST OF DRIVE-BY KILLING SUSPECT
Nov. 25, 2002 – Public pleas by the Police Department for help from the community apparently paid off, as tips were received that led officers to apprehend and charge a suspect in the Nov. 17 drive-by shooting death of Glenroy "Heavy" Farrell in the Estate Contentment area.
Police Chief Novelle Francis confirmed Monday night that police arrested 23-year-old Daniel Ambrose, of the John F. Kennedy housing community, early Friday morning. Francis said authorities believe the motive for the shooting was probably retaliation for an earlier incident.
Over the last two weeks, police have been looking for suspects in a series of drive-by shootings on St. Croix, one of which left Farrell dead after he stopped at a Queen Mary Highway intersection. According to police reports, Farrell was driving west with a teen-age female passenger and an 8-year-old child. At the intersection, a cream-colored truck pulled alongside his black BMW and fired four shots at him, hitting him once in the left arm and once in the back.
Francis said community support led police to make the arrest, and he said tips about some of St. Croix's 22 other homicides so far this year continue to come in.
Unable to post $500,000 bail, Ambrose was remanded to the Golden Grove Adult Correctional Facility. Francis said police are still searching for the driver of the truck.
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Police Chief Novelle Francis confirmed Monday night that police arrested 23-year-old Daniel Ambrose, of the John F. Kennedy housing community, early Friday morning. Francis said authorities believe the motive for the shooting was probably retaliation for an earlier incident.
Over the last two weeks, police have been looking for suspects in a series of drive-by shootings on St. Croix, one of which left Farrell dead after he stopped at a Queen Mary Highway intersection. According to police reports, Farrell was driving west with a teen-age female passenger and an 8-year-old child. At the intersection, a cream-colored truck pulled alongside his black BMW and fired four shots at him, hitting him once in the left arm and once in the back.
Francis said community support led police to make the arrest, and he said tips about some of St. Croix's 22 other homicides so far this year continue to come in.
Unable to post $500,000 bail, Ambrose was remanded to the Golden Grove Adult Correctional Facility. Francis said police are still searching for the driver of the truck.
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'GREEK WEDDING' IS THE YEAR'S HIT FEEL-GOOD FILM
Oct. 31, 2002 (from St. Croix Source) – As "My Big Fat Greek Wedding" continues opening around the country, its filmmakers are enjoying outlandish and unexpected success. "Some of us were talking at the beginning about $20 or $25 million if we're lucky, but no one ever dreamed of hitting $100 million," Rob Schwartz, head of distribution for IFC Films, which released Greek Wedding, told USA Today in early September.
To date, "My Big Fat Greek Wedding," which cost only $5 million to make, has grossed more than $177 million, breaking all sorts of box office records since its limited release in April. Growing from 108 theaters then to 1,967 as of last weekend, the independent film owes much of its success to word of mouth.
Audiences love the movie, and demand is going strong. The film has broken local viewing records in at least one community, having played continuously for more than 15 weeks at the Pleasant Street Theater in Northhampton, Massachusetts.
So what's all the fuss about? Toula Portokalos (Nia Vardalos) is a frumpy 30-year-old hostess at her father's downtown Chicago Greek restaurant, Dancing Zorbas. Toula has three rules to life, the same three rules that govern all Greek women: to marry a Greek man, to have Greek children and to feed everyone until the day she dies. Her husband options are limited, and her parents, Gus (Michael Constantine) and Maria (Lainie Kazan), are rushing her to marry.
Toula talks her father into letting her enroll in computer classes at a college, and she begins to blossom in Cinderella-like fashion. Before she switches jobs to work in the travel agency of her Aunt Voula (Andrea Martin), the man of her dreams enters Dancing Zorbas in the form of a non-Greek Prince Charming, Ian Miller (John Corbett).
Toula finally convinces her father to let her marry Ian, and melee kicks into high gear as Toula's extended family plans her "big, fat Greek wedding."
This year's sleeper hit is a romantic comedy that is surprising and delighting audiences everywhere. It's a feel-good film for the whole family, and the bigger the family, the better.
"My Big Fat Greek Wedding" is 1 hour and 35 minutes. It is rated PG for sensuality and language. It opens Thursday at Market Square East.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
To date, "My Big Fat Greek Wedding," which cost only $5 million to make, has grossed more than $177 million, breaking all sorts of box office records since its limited release in April. Growing from 108 theaters then to 1,967 as of last weekend, the independent film owes much of its success to word of mouth.
Audiences love the movie, and demand is going strong. The film has broken local viewing records in at least one community, having played continuously for more than 15 weeks at the Pleasant Street Theater in Northhampton, Massachusetts.
So what's all the fuss about? Toula Portokalos (Nia Vardalos) is a frumpy 30-year-old hostess at her father's downtown Chicago Greek restaurant, Dancing Zorbas. Toula has three rules to life, the same three rules that govern all Greek women: to marry a Greek man, to have Greek children and to feed everyone until the day she dies. Her husband options are limited, and her parents, Gus (Michael Constantine) and Maria (Lainie Kazan), are rushing her to marry.
Toula talks her father into letting her enroll in computer classes at a college, and she begins to blossom in Cinderella-like fashion. Before she switches jobs to work in the travel agency of her Aunt Voula (Andrea Martin), the man of her dreams enters Dancing Zorbas in the form of a non-Greek Prince Charming, Ian Miller (John Corbett).
Toula finally convinces her father to let her marry Ian, and melee kicks into high gear as Toula's extended family plans her "big, fat Greek wedding."
This year's sleeper hit is a romantic comedy that is surprising and delighting audiences everywhere. It's a feel-good film for the whole family, and the bigger the family, the better.
"My Big Fat Greek Wedding" is 1 hour and 35 minutes. It is rated PG for sensuality and language. It opens Thursday at Market Square East.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
'GREEK WEDDING' IS THE YEAR'S HIT FEEL-GOOD FILM
Oct. 31, 2002 (from St. Croix Source) – As "My Big Fat Greek Wedding" continues opening around the country, its filmmakers are enjoying outlandish and unexpected success. "Some of us were talking at the beginning about $20 or $25 million if we're lucky, but no one ever dreamed of hitting $100 million," Rob Schwartz, head of distribution for IFC Films, which released Greek Wedding, told USA Today in early September.
To date, "My Big Fat Greek Wedding," which cost only $5 million to make, has grossed more than $177 million, breaking all sorts of box office records since its limited release in April. Growing from 108 theaters then to 1,967 as of last weekend, the independent film owes much of its success to word of mouth.
Audiences love the movie, and demand is going strong. The film has broken local viewing records in at least one community, having played continuously for more than 15 weeks at the Pleasant Street Theater in Northhampton, Massachusetts.
So what's all the fuss about? Toula Portokalos (Nia Vardalos) is a frumpy 30-year-old hostess at her father's downtown Chicago Greek restaurant, Dancing Zorbas. Toula has three rules to life, the same three rules that govern all Greek women: to marry a Greek man, to have Greek children and to feed everyone until the day she dies. Her husband options are limited, and her parents, Gus (Michael Constantine) and Maria (Lainie Kazan), are rushing her to marry.
Toula talks her father into letting her enroll in computer classes at a college, and she begins to blossom in Cinderella-like fashion. Before she switches jobs to work in the travel agency of her Aunt Voula (Andrea Martin), the man of her dreams enters Dancing Zorbas in the form of a non-Greek Prince Charming, Ian Miller (John Corbett).
Toula finally convinces her father to let her marry Ian, and melee kicks into high gear as Toula's extended family plans her "big, fat Greek wedding."
This year's sleeper hit is a romantic comedy that is surprising and delighting audiences everywhere. It's a feel-good film for the whole family, and the bigger the family, the better.
"My Big Fat Greek Wedding" is 1 hour and 35 minutes. It is rated PG for sensuality and language. It opens Thursday at Market Square East on St. Thomas.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
To date, "My Big Fat Greek Wedding," which cost only $5 million to make, has grossed more than $177 million, breaking all sorts of box office records since its limited release in April. Growing from 108 theaters then to 1,967 as of last weekend, the independent film owes much of its success to word of mouth.
Audiences love the movie, and demand is going strong. The film has broken local viewing records in at least one community, having played continuously for more than 15 weeks at the Pleasant Street Theater in Northhampton, Massachusetts.
So what's all the fuss about? Toula Portokalos (Nia Vardalos) is a frumpy 30-year-old hostess at her father's downtown Chicago Greek restaurant, Dancing Zorbas. Toula has three rules to life, the same three rules that govern all Greek women: to marry a Greek man, to have Greek children and to feed everyone until the day she dies. Her husband options are limited, and her parents, Gus (Michael Constantine) and Maria (Lainie Kazan), are rushing her to marry.
Toula talks her father into letting her enroll in computer classes at a college, and she begins to blossom in Cinderella-like fashion. Before she switches jobs to work in the travel agency of her Aunt Voula (Andrea Martin), the man of her dreams enters Dancing Zorbas in the form of a non-Greek Prince Charming, Ian Miller (John Corbett).
Toula finally convinces her father to let her marry Ian, and melee kicks into high gear as Toula's extended family plans her "big, fat Greek wedding."
This year's sleeper hit is a romantic comedy that is surprising and delighting audiences everywhere. It's a feel-good film for the whole family, and the bigger the family, the better.
"My Big Fat Greek Wedding" is 1 hour and 35 minutes. It is rated PG for sensuality and language. It opens Thursday at Market Square East on St. Thomas.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
CONTRACTING OFTEN ISN'T BY THE BOOK, AUDIT FINDS
Nov. 25, 2002 – Barely a month after one blistering federal audit of a local government agency became public knowledge, another has been released by the Department of Interior's Office of Inspector General.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situa tion of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situa tion of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
Publisher's note : Like the St. Thomas Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
CONTRACTING OFTEN ISN'T BY THE BOOK, AUDIT FINDS
Nov. 25, 2002 – Barely a month after one blistering federal audit of a local government agency became public knowledge, another has been released by the Department of Interior's Office of Inspector General.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situation of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
Publisher's note : Like the St. John Source now? Find out how you can love us twice as much — and show your support for the islands' free and independent news voice … click here.
The release is of the final draft report on an audit of the Property and Procurement Department which focuses on the awarding — and in some instances the non-awarding — of government contracts.
The earlier draft report, made public in October, was of the first-ever federal audit of the Public Finance Authority (See "Audit faults PFA for management, spending ills".)
The Property and Procurement audit was undertaken to determine whether the V.I. government awarded professional service contracts in accordance with procurement requirements of the V.I. Code, whether contractor performance was monitored, and whether contractors were paid in accordance with provisions of their contracts.
The government struck out on all three counts, according to the audit findings. The report states that during Fiscal Years 2000 and 2001, the government issued 388 professional services contracts totaling approximately $100 million with gross disregard for the contracting process. The auditors found the awarding and the administering of the contracts was not adequate to protect the government's interests. And as a result, the report states, government agencies "regularly violated the procurement process."
The case of the uncontracted contractor
The most glaring lapses cited in the report concern a vendor operating without a contract who was paid in excess of $1 million by the Public Works Department and 11 other government agencies between 1998 and 2002 ostensibly to provide computer services. The auditors found that the contractor did not even have a valid V.I. business license until June 2001.
Audit reports issued by the Office of Inspector General do not identify individuals cited by name.
Public Works Commissioner Wayne Callwood told the auditors that the vendor in question was paid a monthly fee of $4,950 to provide services including the purchase of computer hardware and software and maintenance of the computer network and telephone systems, with the total payment over the four years coming to $375,173.
Callwood said when he became commissioner in the spring of 2001, the vendor was already employed, and he was surprised to learn the vendor had no contract. He said Public Works had experienced "major problems" with the quality of the vendor's services, including:
– Double billing for work performed.
– "Sabotaging" the department's computer network.
– Locking employees out of the network.
– Supplying used, rather than new, computer equipment.
Telephone calls to Callwood on Monday for comment were not returned.
The audit report states that the vendor had no contract with any of the 12 agencies involved. Despite this, a review of vendor payment records disclosed that the vendor received payments from all agencies, totaling $1,019,791. Of that amount, $266,283 represented federal funds.
The hiring of this vendor for extensive consulting work valued at more than $1 million with no record of competitive bidding and without a formal contract violates the V.I. Code. It requires that contracts for goods or services valued at more than $5,000 be put out to bid competitively and that the vendor have a business license. The matter has been referred to the Inspector General's Office of Investigations.
Contracts lacked bidding, funding, monitoring
A review of 70 contracts from FY 2000 and FY 2001 totaling $24.3 million found that 59 should have been awarded through the competitive procurement process. However, only six of these 59 contracts went through that process. In most cases, supporting documents justifying the lack of competition were lacking.
As examples, the report cites a Public Works contract from October 1998 for $125,000 for garbage removal services and another for Education Department construction for $216,372. Neither contact had documentation of the bidding process, which should have been mandatory.
The report states that 338 professional service contracts were awarded over the two years – 212 for FY 2000 totaling $43.6 million and 176 for FY 2002 totaling $57.1 million.
To process these contracts, Property and Procurement had only one staff member, stationed on St. Thomas.
Property and Procurement Commissioner Marc Biggs is on sick leave, according to his office, and his assistant commissioner Randolph Lattimore did not return calls on Monday.
The audit also found that P&P had allowed government agencies to enter into eight contracts totaling $4.6 million for which funds had not been set aside, and into another 16 contacts totaling$13.3 million for which the funds set aside were insufficient to cover the contracted amounts.
In one case, the V.I. Justice Department entered into a $4.3 million contract for the development of a child-support enforcement system with no documented funding evidence.
In all 24 cases of contracts without funding documentation, the report states, there was no indication of Property and Procurement having returned the contracts to the user agencies to obtain such information. Also, all 24 contracts were approved for legal sufficiency by the Justice Department despite the missing or insufficient documentation.
The auditors also found that for 28 of 31 government contracts totaling $4.6 million, payments were made to the contractors before the contracts were fully executed.
The audit also found that government retirees were allowed to receive both retirement annuities and contract payments in excess of the 75 days the law allows. In one case, the auditors found a retiree receiving both types of payments for a period of 182 days.
In addition, the government was found remiss in monitoring the performance and payment of contractors. The auditors found that five contractors had been overpaid by $130,000.
Tourism Web site overpayment acknowledged
One example cited: The Tourism Department entered into a $659,800 contract for design and development of an official tourism Web site which included an allowance of $22,300 for contract-related travel. The auditors found that Tourism officials did not have documentation to support the travel expenses billed.
"Based on our inquiry," the report notes, "the contractor provided travel receipts totaling $9,160 and agreed to refund Tourism the unused $13,140 balance of the travel allowance."
The cost incurred for the Web site, launched last year, has been criticized as excessive by some in the marketing and Web design industries. (See "Government tourism site can now be seen".)
Arnold van Beverhoudt Jr., regional audit manager for Interior's Office of Inspector General, has issued 10 recommendations to Gov. Charles W. Turnbull for reversing the weaknesses identified by the audit. Property and Procurement's Biggs is said to have concurred with all of them.
Van Beverhoudt recommended that the governor direct all executive branch agency heads to adhere to established procurement laws and regulations when contracting for professional services.
Other recommendations require that Property and Procurement:
– Revise the entire procurement process, with a specific, authorized department official to be accountable for final approval of all contracts.
– Discontinue the practice of allowing contractors to perform and be paid for services before their contracts have been fully executed.
– Enforce procurement laws and ensure that operating agencies adhere to them.
– Discontinue approving contracts when there are insufficient funds.
– Develop with the Government Employees Retirement System and the Finance Department of Finance a procedure for avoiding the situation of a retiree being paid both contract money and his or her annuity for more than 75 days.
– Implement procedures to ensure that, should federal surplus property be donated to the Virgin Islands, it is used in accordance with federal requirements. (This item refers to the donation to the territory of a desalination barge that has never been used by the V.I. government. See "Rules continues water barge probe".)
– Implement procedures to monitor performance of all contractors and ensure that they perform services satisfactorily.
– Implement procedures to ensure that payments to contractors are monitored.
– Recover overpayments of $130,000 that were made to contractors.
A first draft of the audit report was provided in July to the governor and to Property and Procurement for their response. Gov. Charles W. Turnbull has not yet issued his response. Rina Jacobs McBrowne, the governor's public information officer, said on Monday that she would check with his legal counsel on the governor's response.
In the cover letter accompanying the final audit report that was submitted to Turnbull dated Sept. 30, van Beverhoudt asked the governor for a response by Nov. 25 — that is, Monday.
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